Civinity successfully raises €8 million in a bond issue following strong investor interest
2023.10.16
Civinity, one of the largest building maintenance and engineering solutions groups in the Baltics, has successfully raised the full amount of the issue in just one week and successfully borrowed EUR 8 million at 11% interest per annum. The funds raised were used to redeem the debt securities placed in 2021.
“Civinity borrowed EUR 8 million from private and institutional investors for two years at 11% interest per annum through a bond placement. The placement was planned in one two-week tranche, but the company collected applications for the full amount of the issue in the first week. With demand significantly outstripping supply, preference for the newly issued bonds was given to investors who had already purchased the company’s 2021 bonds.
The newly issued bonds will be listed on First North, an alternative securities market operated by Nasdaq Vilnius. The proceeds of the bond issue will be used to redeem the debt securities placed in 2021.
“Demand for the bonds significantly exceeded supply, so it did not take the planned two weeks to collect investor applications. We believe that the very high level of investor interest was driven by Civinity’s very strong performance and our future strategy, where we plan to continue our successful growth,” says David Jacka, shareholder and Chairman of the Board of Civinity.
The bonds were underwritten by Šiaulių bankas AB, and the company was advised on the legal aspects of the issue by law firm TGS Baltic.
The bonds issued by Civinity are a good example to all market participants that alternative financing using the bond format is available not only for the real estate sector, but also for a much wider range of projects. The increased activity and involvement of market participants in the capital markets is pushing the whole system upwards.It is good to see that we have more and more companies listing their securities, as Civinity is actively doing. – comments Eglė Džiugytė, Director of Šiaulių bankas’ Financial Markets Department. “Civinity is one of the largest building maintenance and engineering solutions groups in the Baltics. The company brings together more than 30 companies that maintain 10 million sqm of residential and commercial buildings and have installed several hundred engineering systems in different European cities. In 2022, the Civinity team had 1,711 employees in Lithuania, Latvia and the UK, revenues of EUR 74.158 million and EBITDA of EUR 4.121 million.